Electricity availability: A precondition for faster economic growth?

Best, Rohan; Burke, Paul J.

doi:10.1016/j.eneco.2018.06.018

Cited by 56 publications

(37 citation statements)

References 47 publications

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“…Energy infrastructure is a vital component of public infrastructure that facilitates economic growth. The efficiency effects of energy infrastructure are determined within the context of technology type, age of equipment, extent of periodic investment, corruption or poor governance, and type of maintenance employed (Best and Burke, 2018;Gaur and Gupta, 2016;Oyinlola et al, 2020). McKinsey (2015) indicates that promoting the development of power or energy sector has the potential to transform African economies.…”

Section: Introductionmentioning

confidence: 99%

Electricity transmission, distribution losses and economic growth in South Africa

Adams

Atsu

Klobodu

et al. 2020

Heliyon

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This paper employed the autoregressive distributed lag (ARDL) methodology to examine the effect of electricity transmission and distribution losses (ETL) on the economic growth of South Africa over the period 1971-2014. After controlling for foreign direct investment (FDI) and financial development, the results of the study show longrun negative relationship between ETL and economic growth. For robustness checks, we account for nonlinearities/asymmetries in our model and find that a percentage increase in ETL decreases economic growth from 3.786% to 2.245%. The correction of the distortions of the convergence to long-run equilibrium by temporary shocks is reduced from 30.4% to 25.1%. Additionally, financial development and gross fixed capital formation promote growth while FDI and trade have insignificant effect.

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Section: Introductionmentioning

confidence: 99%

Electricity transmission, distribution losses and economic growth in South Africa

Adams

Atsu

Klobodu

et al. 2020

Heliyon

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“…Indeed, electricity is the most versatile and broadly utilised form of energy. The electricity consumption is a widely used indicator of the socioeconomic development and well‐being of a country (Best and Burke, ; Faisal et al ., ). More importantly, the growth in electricity consumption is mainly driven by developing countries.…”

Section: Introductionmentioning

confidence: 99%

The relationship between electricity consumption, trade openness and economic growth in India

Ohlan

2018

OPEC Energy Review

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The present study explores the empirical relationship between electricity consumption, trade openness and economic growth in India utilising cointegration tests and Granger causality vector error correction model for the period 1971–2016. The results of ARDL model reveal that the variables are cointegrated. The robustness of the long‐run relationship between variables is confirmed by applying Hatemi‐J cointegration model. The empirical results show that electricity consumption statistically significantly stimulates economic growth in India both in long term and short term. However, the elasticity of economic growth with respect to electricity use is found to be higher in the long term than that of the short term. Furthermore, we find the existence of a long‐term Granger causality flowing from electricity use to economic growth. In addition, the electricity consumption is also commanded by economic growth in the short‐run. As a broad policy implication, India needs to focus on the development of a sustainable mode of electricity production for achieving high economic growth in the years to come.

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“…As measuring the infrastructure level is challenging, the most likely approach is to compare all provinces' infrastructure to obtain the relative value (level) through a linear regression method. There is a relationship between electricity and the economy, where the electricity demand is increasing as the economic activities are growing (Best & Burke, 2018;Riva et al, 2018). Thus, the regression is conducted between GDRP (Bappenas, 2015;BPS, 2018) and electricity consumption (PT PLN, 2015) of all provinces in Indonesia (Figure 6).…”

Section: Energy Infrastructure -Insufficientmentioning

confidence: 99%

Investigating a Hampered NRE Utilization in Kaltim’s Energy System: Is there an Energy Policy with a Syndrome of the Energy-abundant Area?

Asri

Yusgiantoro

2021

Int. J. Renew. Energy Dev.

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Kaltim presumably experiences an energy paradox, where the energy system is unreliable and unsustainable, despite energy-rich. This study presumes that the paradox is caused by the ‘ill-advised energy policy’ shown by ‘energy-area incompatibility’ that is exacerbated by the ‘energy-rich syndrome’ (a mindset of feeling secure due to energy-abundance leading to a wasteful behavior). This study investigates the indication of the syndrome in Kaltim energy policy by first investigating ‘the incompatibility’ and its impacts by examining Kaltim’s geographical characteristics, energy potential, population-distribution, electricity system, and infrastructure. Also, the impacts of retaining the syndrome through cost analyses. This study finds the incompatibility between energy-sources utilization and geographical characteristics, by conducting a descriptive method with data collection and analyses. Kaltim is forest-dominated with scattered-population, suitable with an off-grid system. However, the electricity development is mostly on-grid, fossil-based designed, explaining the difficulties of electrifying the entire Kaltim, although electricity is surplus. While off-grid should be applied to NRE, the massive use of diesel-gen-sets shows wasteful behavior. By conducting a linear-regression method, this study finds that Kaltim’s electricity consumption (indicating the infrastructure sufficiency) is lower than it should be, given its incredible economic performance. The incompatibility causes infrastructure insufficiency. The cost analysis finds that the massively-used fuel oil is the most expensive. The subsidy would be around 0.003%-0.275% of Kaltim GDRP or 17 billion-1.55 trillion IDR. As the new Capital location, NRE is a must for Kaltim. To conclude, NRE utilization is very low, although its potential is huge, and Kaltim’s forested characteristics suit it. NRE only covers 3% of Kaltim’s electricity, while the potential (hydro alone) is more than 6,900MW. The incompatibility causes an unreliable electricity system, although electricity is surplus. Following Kaltim’s geographical characteristics, NRE should be optimized. This study intends to aware the policy-makers of the syndrome, thereby develop a ‘proper energy policy’.

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Electricity availability: A precondition for faster economic growth?

Cited by 56 publications

References 47 publications

Electricity transmission, distribution losses and economic growth in South Africa

Electricity transmission, distribution losses and economic growth in South Africa

The relationship between electricity consumption, trade openness and economic growth in India

Investigating a Hampered NRE Utilization in Kaltim’s Energy System: Is there an Energy Policy with a Syndrome of the Energy-abundant Area?

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